WHO'S BUYING IT

BY IAN OLGEIRSON, KAGAN The availability of on-demand content has emerged as a cornerstone of the cable industry’s strategy to combat the threat from DBS, but it has yet to prove its value as a significant revenue generator. With first-run movies taking a backseat to the archiving of broadcast and cable network content for time shifting, on-demand packages will have to prove their value by increasing the lure of digital tiers and reducing churn. Subscription VOD packages and adult content will also provide revenue in the near term as the average revenue per VOD household climbs toward the $5 per month benchmark in our five-year outlook.